Contemporary Contemporary Consumer & Consumer &

Business EthicsBusiness Ethics

Milan Milan 2 2 -- 5 5 May, May, 2011 2011

Dr Neil ConnonDr Neil Connon

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See handout 1 See handout 1 --Actors needs and Actors needs and

influencesinfluences

Day/time Topic Notes

Monday2 May 14.00 – 18.00

An introduction to contemporary ethics

• What is/are ethics• What ethical decisions do we make• What are the implications of these• The actors model

Tuesday3 May10.00 – 13.00

Current consumption and the consumer perspective

Implications and reactions of business Government/media/ pressure groups

• A worked example: music • Consumption patterns –

national/international• High consumption and the implications of

this• Rationale for an ethical approach to

business

Wednesday4 May09.00 – 13.00

Implications and reactions of business Government/media/ pressure groups (cont’d)

• Case studies (Primark) Legislation, national/international

• Government involvement in ethics Media reporting and the influence of the press (a UK perspective)

• Pressure group activity and their impact• Presentations

Thursday5 May14.00-18.00

Linking the actors and conclusions

• Likely future implications• Conclusions

Consumer Organisations

Consumers Business

Government(National & EU)

Media

An Introduction to An Introduction to Contemporary Contemporary

EthicsEthics

Session 1Session 1Monday Monday 14.00 14.00 –– 18.0018.00

•• Defining ethicsDefining ethics

•• What changes ethics?What changes ethics?

•• Culture and ethicsCulture and ethics

•• Consumer ethicsConsumer ethics

•• Business ethicsBusiness ethics

•• Government ethicsGovernment ethics

•• ConclusionsConclusions

Lecture OutlineLecture Outline

• Part of philosophy

• defn: search for understanding of the basic truths and principles of the universe, life and morals

• Ancient Egyptian and Sumerian civilisations

• Philosophers/idealists/academics have attempted to clarify, make sense of and define

• Perceptions change, people look at ethics in context of contemporary surroundings

• Morality is constant theme, as is code of ethics

• Often introduced/defined by non/religious

Defining EthicsDefining Ethics

• “ the science of morals”

• with morals being defined as: “conforming to, or

regulated by what is right”The Cassell Concise Dictionary

Let us regard this as settled: what is morally wrong can never be advantageous, even when it enables you to make some gain that you believe to be to your advantage. The mere act of believing that some wrongful course of action constitutes an advantage is pernicious. (p.177)

Cicero: Selected Works, Penguin Classics, Harmondsworth, England, 1971

Defining EthicsDefining Ethics

Defining EthicsDefining Ethics

See handout 2 See handout 2 --Do questions 1, 2 & 3 Do questions 1, 2 & 3

((c.30 c.30 minutes)minutes)

Study of ethicsStudy of ethics• history of ethics: Aristotle - Nietzsche -

‘existentialism’

• medical ethics

• legal ethics

• environmental ethics

• consumer ethics

• business ethics

• political ethics

Types of EthicsTypes of Ethics

•• religionreligion -- a higher calling, judged in next world

•• cultureculture–– dynamic, despite cultural awareness ethics of individual are still subjective (traits)

•• events events -- events change viewpoints

•• philosophy philosophy e.g. existentialism: ‘existence is the only concrete thing, the rest is mere abstraction’. (Lundin p. 379)

•• acceptable norms of behaviouracceptable norms of behaviour-- dynamic

•• economic development economic development -- see next slide

What changes ethics?What changes ethics?

DefinitionsDefinitions

Consumer Consumer Policy and Policy and

MaslowMaslow

e.g collectore.g collector’’ s s piecespieces

luxuries that luxuries that define youdefine you

buy gifts for othersbuy gifts for others

expectation that they are expectation that they are safesafe

ability to buy productsability to buy products

•• culture culture -- customs and civilisations customs and civilisations

•• Burke (1995) Burke (1995) -- modern idea of popular culture modern idea of popular culture associated with associated with ‘‘ burgeoning forms of national burgeoning forms of national consciousness developing after 18consciousness developing after 18thth c.c.’’

•• is culture more definite and collective is culture more definite and collective consciousness more apparent than before?consciousness more apparent than before?

•• better communicationsbetter communications

•• influence by globalisation influence by globalisation

CultureCulture

Defining EthicsDefining Ethics

See handout 2 See handout 2 --Do question 4 & Do question 4 & 5 in 5 in

groups groups ((c.30 c.30 minutes)minutes)

Approaches to ethicsApproaches to ethics

Utilitarianism (consequentialist

approach)

Decision based on overall consequences of our acts. Decisions that promote the greatest amount of these values (well being: happiness; health; dignity; integrity; freedom; respect of others) and therefore the greatest amount of values for the greatest number of people.

Deontological ethics

Decisions based on moral principles (e.g. respect of human rights). The following of pre-determined rules. Some rules should be followed despite the consequences (uphold the law, keep your promises and uphold your contracts).

Virtue ethics Consider moral character of individuals and the influence of characteristics. Characteristics constituting a good and full human life (Greeks: courage; moderation; wisdom; justice. Early Christian: faith, hope, charity)

•• what is an ethical product?what is an ethical product?

•• what is ethical purchasing behaviour?what is ethical purchasing behaviour?

•• ‘‘ ethical purchase behaviour can mean people not buying ethical purchase behaviour can mean people not buying a certain producta certain product’’ .....or...........or......’’ a deliberate restriction of a deliberate restriction of choice in purchase behaviourchoice in purchase behaviour’’

Smith (1990) Morality and the market p.2

•• the purchase of a good is viewed as a bundle of the purchase of a good is viewed as a bundle of considerations, ethics may be one of these (considerations, ethics may be one of these (Holbrook, 1995)

Consumer EthicsConsumer Ethics

•• individuals have little influenceindividuals have little influence

•• groups exercise considerable power (consciously or groups exercise considerable power (consciously or unconsciously)unconsciously)

•• culture has developed to where minority interests have been culture has developed to where minority interests have been voiced often turning into powerful interest lobbies, wielding voiced often turning into powerful interest lobbies, wielding power at the very centre of government power at the very centre of government

•• e.g. e.g. western markets have been affected by green consumer western markets have been affected by green consumer behaviour, that means by behaviour that reflects concern about behaviour, that means by behaviour that reflects concern about the effects of manufacturing and consumption on the natural the effects of manufacturing and consumption on the natural environmentenvironment. (Wagner p1.). (Wagner p1.)

Consumer EthicsConsumer Ethics

•• over the past decade many companies began to feel the over the past decade many companies began to feel the impact of market forces brought about by ethical issuesimpact of market forces brought about by ethical issues

•• changes include buying habits of environmentally changes include buying habits of environmentally orientated consumers and boycotting behaviourorientated consumers and boycotting behaviour

•• this has resulted from media reporting and pressure this has resulted from media reporting and pressure group activitygroup activity

•• Simms (1992) itSimms (1992) it”” ..is too ..is too ‘‘ trendytrendy’’ and and ‘‘ alternativealternative’’ for for their conservative, popularist/mass imagetheir conservative, popularist/mass image”” for the large for the large supermarkets to be concerned with products that have supermarkets to be concerned with products that have ethical credentials. ethical credentials.

•• has there been a change in this attitude? has there been a change in this attitude?

•• when, if ever, will ethical products reach some kind of when, if ever, will ethical products reach some kind of critical mass and become mainstream?critical mass and become mainstream?

Business EthicsBusiness Ethics

• Good people do not need laws to tell them to act justly, while bad people will find a way around the laws.

Plato

• No snowflake in an avalanche ever feels responsible.

Voltaire

Taken from Hartman & DesJardins (2010)

Ethics and business: quotesEthics and business: quotes

Organisational decision Organisational decision making processmaking process

1. Determine the facts

2. Identify the ethical issues involved

3. Identify stakeholders

4. Consider the available alternatives

5. Consider how a decision affects stakeholders:– Consequences;

– duties, rights, principles; – implications of personal character

•• if the main role of political parties is to get in to or if the main role of political parties is to get in to or maintain power, they must reflect and be in touch with maintain power, they must reflect and be in touch with the feelings of the peoplethe feelings of the people

•• interest groups lobby government to put their ideas and interest groups lobby government to put their ideas and concerns to ministersconcerns to ministers

•• some groups feel that the political system cannot some groups feel that the political system cannot achieve their objectives in the way they want them to be achieve their objectives in the way they want them to be achieved, and therefore may operate outwith the legal achieved, and therefore may operate outwith the legal systemsystem

•• government reacts to certain issues government reacts to certain issues -- those issues are those issues are dealt with dealt with -- government/quasigovernment/quasi--govt/independent bodygovt/independent body

Government ethicsGovernment ethics

•• the ethical stance taken by consumers and the effect the ethical stance taken by consumers and the effect it has on their consumption patternsit has on their consumption patterns

•• extent ethical concerns are changing over time and extent ethical concerns are changing over time and what effect these might have in the futurewhat effect these might have in the future

•• reaction of different groups and their pursuance of reaction of different groups and their pursuance of changes: this includes changes: this includes –– pressure groupspressure groups–– businessbusiness–– GovernmentGovernment–– media media –– ConsumersConsumershttp://news.bbc.co.uk/1/hi/business/8258039.stmhttp://news.bbc.co.uk/1/hi/business/8258039.stm

Why study ethics in this context?Why study ethics in this context?

•• as an academic area of study the subject of ethics as an academic area of study the subject of ethics has been around a long timehas been around a long time

•• it has developed with time and become highly it has developed with time and become highly specialised in naturespecialised in nature

•• the course is mainly concerned with consumer and the course is mainly concerned with consumer and business ethicsbusiness ethics

•• need to identify the effect changes in ethical outlook need to identify the effect changes in ethical outlook will have on the consumer, government and will have on the consumer, government and businessbusiness

•• ...and how each group face up to these changes...and how each group face up to these changes

ConclusionConclusion

...any questions?...any questions?

Please read Please read handout 3 for handout 3 for

tomorrowtomorrow